Shares in EP&T Global Ltd (ASX: EPX) are exploding into the stratosphere following the company's strong trading update.
During late morning trade, the EP&T share price touched a 2-month high of 23.5 cents before pulling back. At the time of writing, its shares are swapping hands for 19.5 cents, up 56%.
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How did EP&T perform?
In today's release, EP&T advised it has delivered robust growth for the first quarter of FY22.
Annualised recurring revenue (ARR) came to $6.4 million, an increase of 21% over the prior period ($5.3 million). The energy management solutions company installed its EDGE Intelligent Systems in 29 buildings which led to the higher ARR.
The company noted that the easing of COVID-19 restrictions enabled building access and installations to accelerate. This has led to sales initiatives generating continued pipeline growth.
As such, ARR is forecasted to swell to $9.8 million by 30 June 2022, a jump of 85% over the 12-month period.
The 3-year contract with leading asset manager, DWS, is on track to be deployed and live before the end of FY22. The annual contract value (ACV) is $2 million with a total contract value (TCV) of $6.1 million.
EP&T CEO, Trent Knox commented on the outlook for the company:
We continue to have a strong focus on the conversion of ACV to annualised recurring revenue (ARR) which is key to increasing revenues and improving operating cash flows.
We are well positioned to capitalise on future sales opportunities with an ever-expanding list of verticals including commercial office, retail, hospitals, schools, hotels, clubs, and industrial.
About the EP&T share price
Since listing on the ASX boards in May 2021, EP&T shares traded mostly sideways up until the beginning of September. Its shares continued to fall lower, hitting an all-time low of 10.5 cents on 8 October. However, today's rise has put it back within August levels.
EP&T commands a market capitalisation of roughly $22.66 million and has approximately 116.18 million shares on hand.
